Piovan first half year closed with good results, with particular regard to profits

Piovan's board of directors approved the consolidated financial results of the first half of 2024. Total consolidated revenues and other income amounted to 287.5 million euros, 0.9% less compared to the first half of 2023. Adjusted operating income reached 22.9 million euros, or 8% of total revenues (+10.6% compared to the first half of 2023). Consolidated adjusted Ebitda stood at 38.8 million euros (13.5% of revenues and other income, +3.0% compared to the adjusted Ebitda of the first half of 2023), while consolidated Ebit, excluding the effects of Ipeg's purchase price allocation and NuVu's provisional purchase price allocation, amounted to 33.3 million euros (11.6% of total revenues and other income, +2.4% compared to 30 June 2023). The negative net financial position improved as well, down to 56.891 million euros compared to 30 June 2023, when it reached 102.578 million euros. Finally, earnings per share as at 30 June 2024 stood at 0.54 euros.

To sum up, in the first half of 2024 Piovan Group recorded good financial results, with particular regard to earnings thanks to the increase in market shares and the integration of takeovers. The company is resilient in terms of sales volumes and is constantly improving earnings, both as a percentage of turnover and in absolute values, within a macroeconomic scenario that is still unstable though improving. A strong point is the group's international coverage, with subsidiaries and production sites in a number of regions - including the most dynamic ones - and in diversified sectors. Great support is also provided by a global technical and commercial assistance network.

"The results achieved in this first half of the year – against a macroeconomic background characterised by great uncertainty – confirm once more the strength of the Piovan Group. Thanks to its global presence, attention to customers and focus on innovation, the company has been able to confirm its market position. These qualities are also appreciated and shared by Investindustrial, an international partner with a strong entrepreneurial spirit that will accompany our group along its growth path in the future," said Nicola Piovan, Executive Chairman of Piovan.

"We are very satisfied with the group's performance in this first half of the year. We are also confident that the coming months will see a further acceleration in financial performance, given the positive trend in orders in recent months that has allowed us to gain new market shares," added Filippo Zuppichin, Chief Executive Officer of Piovan.

As regards revenues by market, the Technical Polymers operations showed a 4.3% decline mitigated by a 4% rebound in the second quarter and more recently a positive trend (revenues in this area represent 75.9% of the total). This drop in revenues is due to a weak market since mid-2023, caused by high interest rates, with greatest impacts on the consumer goods and construction sectors. In Europe, the Recycling operations suffered the regulatory uncertainty, a situation that is however improving. Revenues from the automotive sector (10% of the total) and the fibre sector saw an increase compared to 2023.

Looking at the geographic regions, market shares in EMEA are increasing, the automotive industry in North America is holding up and the satisfactory backlog in Asia gives hope for a partial recovery in the second half of the year. Finally, the general drop in demand in South America in the first quarter of the year has been partially offset. In Europe, after a few months of uncertainty that slowed down the polymer recycling market, new regulations have been introduced that will support reuse and recycling. In addition, regulatory changes are envisaged in India and China on the use of recycled plastic in food packaging that will boost the development of Asian markets. 

Finally, on July 19, 2024, Pentafin, Piovan's main shareholder, and Automation Systems, a company indirectly owned by Investindustrial, signed a sale and purchase agreement for the acquisition of the majority stake in Piovan Group. The authorisation of this transaction would open a new chapter for the future of Piovan Group and Investindustrial. The next goal will be the consolidation of Piovan's leadership and the strengthening of its international position, along with the expansion into new markets and application segments. The resignation of the board of directors on 31 July will allow the appointment of a new board reflecting the future shareholding structure of the company.